America Movil (AM) has completed the spin-off of all telecoms towers and other associated passive infrastructure in most of the Latin American countries where it operates, with all relevant assets, liabilities and capital transferred to a new company named Sitios Latinoamerica (Sitios Latam).
Under the terms of the transaction approved by shareholders last September, Mexico-based Sitios Latam operates independently from AM’s management and capital structure. Its business focuses on the construction, operation and marketing of towers and other structures for the installation of telecommunications equipment. AM’s latest announcement confirms that Sitios Latam’s towers will be available for access and use by all mobile operators in Argentina, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Puerto Rico and Uruguay, while adding that the new company ‘has started the construction of towers in Peru’. Sitios Latam has an initial inventory of 29,090 towers on an aggregate basis, 39% of which are in Brazil, and the company will continue to evaluate growth opportunities in the region.
Sitios Latam will be listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV). Before the distribution of Sitios Latam shares, there will be a consolidation in the number of shares (inverse split) at a 1:20 ratio, with AM’s shareholders receiving one share of Sitios Latam for every 20 AM shares.
